Member Info for stockdale

Do you sell up your stocks for the weekend?

Is the company in trouble with cash flow? Just wondering why you'd be surprised if the dividend wasn't suspended. They've just had a new contract:

Tuesday: "Sharjah National Oil Corporation (SNOC), today announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited."

I was around at the time. They were predictions by so called experts. It transpires they were BS as technology has allowed further discoveries and methods to recover the oil. However they were serious predictions.

Something else that surprises me as someone who studied Environmental Sciences at university in the 1970's is how we can have a current oil price of Brent at $26 when we had $120+ back then into the 80' and 90's and the prediction for oil to run out by 2000. Says a lot for 'expert' predictions.

That's about right lilo. The only correct answer is what actually happens and we don't know that until it happens. But the investigation had been going on for years and had already knocked back the SP considerably. Therefore the possible upside is greater than the downside from now on.

The SFO situation has been in place for years. It shouldn't have an added effect now. POO effects all oil companies and PFC is not just in oil.

SP moving up a little. Not as much as other shares. That surprises me a little. PFC goes ex-dividend on 22 April with a payout of two thirds of the year's dividend in one lump in May. The market may think the dividend could still be cancelled. We saw that with Wetherspoons and their SP rose 25%.

So the SP has risen a little now and we're expecting 19.54p per share in May. That's cash in your pocket at 10% or so for the two thirds payment in May. What's not to like?

Shell rising sharply and PFC fairly static despite a new PFC contract and two thirds of the annual dividend being due soon and Shell having already just gone ex-dividend. Brent Oil up slightly from $25 to $28.

Some good news. A straw to grasp.

Brent at $25 doesn't help of course. The current 8% down is probably down to that fall back in the oil price.

If PFC are going to cancel the dividend they need to do it now. Waiting will ensure the SP drops further and then any benefit will just bring it back to the current SP. Otherwise leave it in place and buyers will be attracted to get the dividend. PFC can afford it.

It benefited Wetherspoons to cancel the dividend by 25% or so and their SP is still up from then.

And by the way Newbie. You say cash is king. You do realise a special dividend would deposit cash in to your share account don't you?

If you got 35p or more for a special dividend why would you care if the SP 'pancakes'? How much did you pay for your shares? Any subsequent share value is a bonus. Any at all.

If the dividend is maintained this is currently a 16%+ return with two thirds of that due in May. Short term trading is all very well but PFC isn't the best choice for that with that dividend return.

Spoke too soon. The market noticed the price of oil has dipped again.

Maybe they don't want to be out of it? SP currently rising. Not a lot of profit from profit taking at this price.

Really? Wetherspoons remove their dividend and the market approves by their SP rising 25%. You think the market will treat PFC differently? By pushing the SP down more?

So if PFC removed the dividend for April / May will the SP rise in a similar way? That's the question. Only action to do so from the BoD will provide an answer.

Mark, If PFC are in the same position? 400p+ down to 160p? So if it's more to do with that then surely the PFC SP could respond in the same way, especially as other oil stocks are up, as Warthog points out.

https://www.cmcmarkets.com/en/news-and-analysis/wetherspoons-share-price-jumps-despite-dividend-cancellation

Dividend cut at Wetherspoons has actually boosted their SP.